Republic of Turkey Prime Ministry Investment Support and Promotion Agency of Turkey ISPAT Investment Climate of Turke

1. Republic of Turkey Prime Ministry Investment Support and Promotion Agency of Turkey ISPAT Investment Climate of Turkey Ahmet İhsanErdem Vice President - Head of Investor Services Department

2. AGENDA • The Agency • Turkey With Some Key Figures • Top Reasons to Invest in Turkey • Investment Environment • Turkey & Arab Countries Relations

3. The Agency

4. REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY Established in 2006 Attached to the Prime Ministry and Reports directly to the Prime Minister Private sector approach ONE STOP SHOP approach Guidance on; Laws, Regulations, Site Selection, Sectoral Reports, Local Market Players, Potential Partners Confidentiality, Free of Charge 2 offices (Ankara – Istanbul) ISTANBUL ANKARA invest.gov.tr

5. REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY Website & Mobile Apps • www.invest.gov.tr • Available in 12 languages including Arabic • User-friendly «Invest in Turkey» app for iOS and Android devices. • All aspects of doing business, investment opportunities, incentives, key facts and more about Turkey. invest.gov.tr

6. REPUBLIC OF TURKEY PRIME MINISTRY • INVESTMENT SUPPORT AND PROMOTION AGENCY • The International Network invest.gov.tr

7. REPUBLIC OF TURKEY PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY • ISPAT chairs the World Association of Investment Promotion Agencies • WAIPA was established in 1995 • 244national and sub-national agencies from 162 different countries • HQ of WAIPA will be relocated from Geneva to Istanbul invest.gov.tr

8. Turkey With Some Key Figures

9. Turkey is the 17th largest economy in the World (6th when compared to EU Countries – IMF/2013)

10. 76,667,864 will continue to increase and reach 93,4 million in 2050

11. Turkey has the largest youth population when compared to the EU countries

12. 33millionbroadband internetsubscribers(2013) 70 millionGSM users (2013) 57millioncredit card users (2013)

13. Turkey is the 17th largest automotive producer in the World and 6th largest when compared to the EU countries (OICA 2013)

14. Turkey is the largest TV manufacturer in Europe

15. Turkey is the 8th largest steel producer in the World and 2nd largest when compared to the EU countries Source: Worldsteel Association, 2013

16. Turkey is the 6th mostvisited holiday destination in the World (2012) Out of World’s top 100 best hotels 22are from Turkey (TUI Holly, 2012)

17. Top reasons to invest in Turkey

18. GDP GROSS DOMESTIC PRODUCT One of the biggest emerging economies Average AnnualRealGDP Growth (%) 2002-2013 5% annual average growth in the last 11 years invest.gov.tr Source: IMF

19. GDP Growth Future Projection by the OECD Average Annual Real GDP Growth (%) Forecast in the OECD Countries 2012-2017 Turkey will be the fastest growing economy among the OECD countries invest.gov.tr Source: OECD Economic Outlook No.93

20. Turkey is located in the center of the most promising markets of the World 4h You can access to multiple markets from Turkey (Total 56 Nations, 1,5 Billion People $ 25Trillion GDP)

21. Turkey as Regional Hub invest.gov.tr

22. Exports Manufacturing industry constitutes 93% of Turkey’s total export Billion USD invest.gov.tr Source: TURKSTAT

23. Exports • Product & Market Diversification of Exports invest.gov.tr Source: TURKSTAT, Products with 2-digit HS Codes, EU includes 27 countries (new members in 2004 were included in 2002 figures), *Data for 2012

24. EU Customs Union and FTAs Customs Union with the EU: There is free circulation of goods between Turkey and 28 European Union member countries. FreeTradeAgreementswith25countries: invest.gov.tr Source: Undersecretariat of Foreign Trade, * In ratification process

25. Investment Environment

26. Structural Reforms National Treatment Access to Real Estate Guarantee of Transfers = International Arbitration Employment of Expatriates Freedom to Invest Corporate Income Tax The New Commercial Code Protection Against Expropriation %20 invest.gov.tr

27. Structural Reforms • ImprovingDoing Business: • Number of daysto set up a company Source:World Bank Doing Business Reports

28. NEW INCENTIVE SYSTEM 4. Incentivesfor Strategic Investments 3. Incentives for large-scale Investments 1. General Incentives 2. Regional Incentives • VAT Exemption • Custom Duty Exemption • Tax Deduction • Employer’s share for insurance premium payment • Land provision • VAT Exemption • Custom Duty Exemption • Tax Deduction • Employer’s share for insurance premium payment • Land provision • Interest Support • VAT Refund • VAT Exemption • Custom Duty Exemption • VAT Exemption • Custom Duty Exemption • Tax Deduction • Employer’s share for insurance premium payment • Land provision • Interest Support (except 1st and 2nd regions) Incentive System

29. FDI inflows to Turkey More than 4.000 of them are from Arab countries invest.gov.tr Source: The Central Bank of Turkey& Ministry of Economy

30. IncreasingConfidence in theTurkishEconomy Investment Grade byMoody’s in May 2013 Investment Grade by JCR in May 2013 Investment Grade byFitch in Nov 2012 invest.gov.tr Source:Respective rating agencies Source: The Central Bank of Turkey& Ministry of Economy

31. Turkey & Arab Countries Bilateral Economic Relations

32. FDI inflows to Turkey Arab investors are among the top investors in Turkey, over the past decade, they have invested over $10 billion in Turkey invest.gov.tr Source: CBRT

33. MajorM&As in Turkey • M&As deals with over $100 million invest.gov.tr Source: Deloitte, E&Y

34. ON

35. Thank you very much for your attention..